Overall, I suspect that we will see more money come off the table in the high fliers as longer-term investors take advantage of the anxiety that the shorter-term traders are feeling. A possible test of the S&P 500 200-day moving average of 1756 is not out of the question as large asset managers put money to work.
Calls for a 15 percent to 20 percent correction, I think, are misinformed. But hey, that's me! Dennis Gartman was screaming this week that it was time to "get out of stocks" — this is clearly like screaming FIRE in a crowded cinema. Exactly what you do NOT want to do.
Read MoreWhat are stocks doing now? Click here for the latest update
Kenny Polcari is director of NYSE floor operations at O'Neil Securities and a CNBC contributor, often appearing on "Power Lunch." Follow Kenny on Twitter
@kennypolcari and visit him at kennypolcari.com.
Disclosure: The market commentary is the opinion of the author and is based on decades of industry and market experience; however no guarantee is made or implied with respect to these opinions. This commentary is not nor is it intended to be relied upon as authoritative or taken in substitution for the exercise of judgment. The comments noted herein should not be construed as an offer to sell or the solicitation of an offer to buy or sell any financial product, or an official statement or endorsement of O'Neil Securities or its affiliates.